When pitching their startups, first-time entrepreneurs often brag that they don’t have competition. This boasting usually implies that they’re onto a unique opportunity that’s never been thought of before. News flash – there’s no such thing as a new business idea. Capitalism is amazingly efficient at allocating resources and filling needs. If there is a latent need of a significant size, it has likely already been met. In other words, if there really is no competition for your idea, then it’s probably a bad idea. Competition is a good thing. Not only does it establish that there is a market, but you can learn valuable lessons from your competitors. In fact, if you take a look around, most industry captains were not first to market. Instead, they were fast followers that stood on the shoulders of competitors who went before them. Granted, while incredibly rare, it is possible that you actually don’t have any direct or indirect competitors. If this is the case, you better have a bulletproof story as to why you believe this market exists and how you’re going to create it.
